Volatile and directionless markets call for innovative strategies to profit from the current market conditions, according to Stockwinners.com (http://Stockwinners.com). Let's look at recent volatility and directionless trading in the Dow Jones Industrial component, Caterpillar, Inc. (NYSE:CAT). In recent trading shares have oscillated between $86.25 and $92, well within the stock's 52-week trading range of $67.54 to $116.95. On August 13, 2012, when CAT was trading at $89.17, Stockwinners.com recommended a Call-Spread strategy on the stock. In this trade, a September $87.5 Call Option was purchased at $3.54 and a September $92.5 Call Option was sold on the issue for $2.21, for a net investment of $1.33. Readers were advised to take profit on the trade when the spread reached $2.50 on August 21. The strategy allowed an investor to turn their $1.33 to $2.50 profit in a short period of seven trading days, that is a profit of 87.9 percent. CAT shares last traded at $88.10.
In another trading strategy on August 13th, readers were encouraged to take a long position on Ellie Mae Inc (NYSE:ELLI) as shares had formed a bullish “flag” formation and were ready to move higher out of the said formation. On August 17th, four days later, the position was closed at $28.85 for a solid return of 13.85% in four days.
In addition to daily option picks, the service offers a continuously updated Active Traders page, market alerts by E-mail, real-time news, and daily stock picks. "Each morning, we feature a stock with good fundamentals and favorable technical charts," said Nia. "Over the one month ending last Wednesday, we published twenty-two such Daily Picks. The average stock rose 18% in nineteen days. Among the solid gainers was Pier 1 Imports (NYSE:PIR) , up 11% in ten days, and Terex Corporation (NYSE:TEX) , up 12% in seven days." Free two-week on-line trial subscriptions to the STOCKWINNERS.com service are available at http://www.stockwinners.com. The trial membership does not require use of a credit card. The company may be reached at 972-63TRADE.
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